Its a 2 bed 1 bath currently but the 2nd floor could be finished into a 3rd bedroom or bonus room by injecting future capital to increase rents and/or refinancing in a BRRR manner. 

If you were purchasing the property at the appraised value, then yes, you'd need to have a down payment to inject equity in order to meet the LTV requirement.

Usually we look for upgrades to be 20% or higher because often times the upgrades won't last that long or it's just more likely they'll need another injection of cash. 

There are some chemicals you can inject that find the leak and seal it, but that has a 50/50 success ratio.

Based on your cash injection and your target ROI, I would say you should be at $725-$750K max for your purchase here.  

That bandit sign story injected even more confidence into what I already have, it let me know that persistence will produce results. 

These are my numbers from my spreadsheet assuming market rents (including my rent from my business):Total Cost of project: 1,003,300 with construction contingency 10%, closing, land, and loan feesBorrower injection:$351,155Loan Funds: 652,145Monthly Payment(with prop tax/insurance): 5542Market rental income: 94,500Vacancy 5%: 4725NOI: 89,775Debt Service Plus Prop tax: 66,456Cash Flow: 23,270Cash on Cash year 1 6.6 Percent.Thanks for reading!  

It allows a 10% down payment/equity injection at a time when many commercial lenders require 30% down.You can finance manufacturing or Green Building projects up to $12,000,000.

Government inflation and injection of cash provides temporary growth and creates bubbles that will eventually be corrected by the market. 

And in markets like Raleigh where the hedge funds are no longer providing a 'floor' by injecting hundreds of millions of US $, we may see the market move in a more orderly manner based on current affordability and supply/demand functions, meaning don't bet on no seasonal influences.